Like most tax systems built on taxpayers voluntarily complying with tax requirements, Texas has a voluntary disclosure agreement (VDA) process whereby past due tax may be remitted in a way where the taxpayer can avoid certain penalty and interest charges.
Generally the purpose of this is to provide an incentive for companies to due the diligence required to remit the tax and to relieve the burden on taxpayers 'doing the right thing.' It's smart policy and don't see it going anywhere, however programs like this tend to evolve over time.
The Comptroller produces a guide publication - 96-576 giving an overview of VDAs. Frankly it's not much but does note how to contact to get the ball rolling.
Much of the details are unclear, not publicly available and subject to changing policy, so there is only so much general information we can say:
There are specific terms where interest will and will not be waived.
There are specific terms where penalty will and will not be waived.
Failing to comply with the agreement requirements may trigger an audit.
There are specific reporting requirements for anything reported using this method.
Generally, the disclosure must be signed by an officer
Really, if your company is considering a VDA it makes sense to talk to an expert and get their opinion. We handle VDAs in Texas - mostly sales tax. If you have any questions or would like to discuss your situation, please feel free to reach out. Initial consultations to potential clients are free.
